APD | Despite Economic Growth, Business Face Headwinds Due to Global Issues

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By APD writer Melo M. Acuña

MANILA,July.1(APD) -A leading businessman said the country’s exports and manufacturing sectors now face headwinds due to developments in the world market.

Employers Confederation of the Philippines (ECOP) President and treasurer of the Philippine Chamber of Commerce and Industry Sergio Ortiz-Luis, Jr. said while the slight recovery in exports last April was a relief, it has remained “so fragile considering the competition never sleeps.”

Speaking at the 6th Anniversary of Tapatan sa Aristocrat, a weekly public affairs forum, Ortiz-Luis said they have realized that despite the fundamental principles may have remained the same, “the rules of engagement and processes have continuously evolved” heavily influenced by developments in technology.

“Unfortunately, this environment can be very hostile to the micro, small and medium enterprises,” he added. He represents this sector in Philippine Exporters Federation and the Philippine Chamber of Commerce and Industry.

He said this time could have had the “Golden Age” for Micro, Small and Medium Enterprises (MSMEs) with the ASEAN and the Philippines promising to make MSMEs their priority through programs, services and opportunities.

“In the Philippines, MSME programs and projects are almost redundant and duplicating many agencies. Yet we have not maximized their potentials, with GDP and employment contribution stagnating at 30% and 60% at best,” he explained. Despite the prevailing conditions, he said they recognize MSME as potential economic growth drivers, especially those engaged in international trade or exports.

Ortiz-Luis said Philippine business supports the “Ease of Doing Business” principle as whole-of-government approach to make agencies work together. However, he added it is both urgent and critical that government provide more resources and attention to the export industry’s requirements as well as the MSMEs being major productive sectors that can generate jobs and improve the people’s income.

“We say no to policies and laws, particularly on labor, that put us at a disadvantage especially against our fiercest competitors, the ASEAN manufacturers,” he explained. He called on the government to vigorously implement domestic reforms in pursuit of decentralization and computerization to help lower business costs and facilitate sustainability.

“There should be more money for export promotion and MSME-friendly financing through out-of-the-box solutions,” he hastened to add as he called for the national government for predictability and transparency to help attract the right investors.

He said the goal has remained the same, to be the best tiger economy in the region.

“Definitely not easy, but by harnessing emerging opportunities for the greater good, this is certainly possible,” Ortiz-Luis concluded.

(ASIA PACIFIC DAILY)